Demand, Supply and Equilibrium Quiz -BBM 5

What is the definition of effective demand?

• A wish

• A desire without ability to pay

• A potential demand

• A desire with ability and willingness to pay

What does individual demand refer to?

• Quantity demanded at equilibrium

• Quantity supplied by producers

• Quantity a person is willing to buy at a given price

• Total quantity demanded by all consumers

Which of the following factors does NOT affect the quantity demanded?

• Advertising

• Cost of production

• Consumer income

• Price of the product

What is the relationship described by the law of demand?

• No relationship between price and quantity demanded

• Direct relationship between price and quantity demanded

• Inverse relationship between price and quantity demanded

• Constant relationship between price and quantity demanded

What happens to the demand curve when there is an increase in demand?

• Remains unchanged

• Shifts to the left

• Shifts to the right

• Flattens out

What is a demand schedule?

• A summary of market trends

• A graphical representation of demand

• A tabular presentation of quantity demanded at different prices

• A list of all consumers

What does a downward-sloping demand curve indicate?

• Supply is greater than demand

• Higher prices lead to higher demand

• Lower prices lead to higher demand

• Demand is constant regardless of price

Which of the following is a determinant of supply?

• Consumer preferences

• Price of the product

• Taste and preferences

• Expectations

What is the effect of a price ceiling set below the equilibrium price?

• Increased supply

• Equilibrium price

• Shortage of goods

• Surplus of goods

What does a shift of the supply curve to the left indicate?

• Decrease in supply

• No change in supply

• Increase in supply

• Increase in demand